Company to Host Quarterly Conference Call at
5:00 P.M. ET on May 9, 2024
The information in this press release should
be read in conjunction with an earnings presentation that is
available on the Company's website at
investors.amcoastal.com/Presentations.
American Coastal Insurance Corporation (Nasdaq: ACIC) ("ACIC" or
"the Company"), a property and casualty insurance holding company,
today reported its financial results for the first quarter ended
March 31, 2024.
($ in thousands, except for per share
data)
Three Months Ended
March 31,
2024
2023
Change
Gross premiums written
$
197,458
$
187,123
5.5
%
Gross premiums earned
$
168,822
$
144,476
16.9
%
Net premiums earned
$
68,730
$
87,324
(21.3
)%
Total revenue
$
73,204
$
90,320
(19.0
)%
Income from continuing operations, net of
tax
$
23,599
$
30,367
(22.3
)%
Income from discontinued operations, net
of tax
$
—
$
236,913
NM
Consolidated net income
$
23,599
$
267,280
(91.2
)%
Net income available to ACIC stockholders
per diluted share
Continuing Operations
$
0.48
$
0.70
(31.4
)%
Discontinued Operations
—
5.44
NM
Total
$
0.48
$
6.14
(92.2
)%
Reconciliation of net income to core
income:
Plus: Non-cash amortization of intangible
assets and goodwill impairment
$
812
$
812
—
%
Less: Income from discontinued operations,
net of tax
$
—
$
236,913
NM
Less: Net realized losses on investment
portfolio
$
—
$
(83
)
NM
Less: Unrealized gains (losses) on equity
securities
$
(50
)
$
474
NM
Less: Net tax impact (1)
$
181
$
88
NM
Core income(2)
$
24,280
$
30,700
(20.9
)%
Core income per diluted share (2)
$
0.50
$
0.70
(28.6
)%
Book value per share
$
4.27
$
2.08
NM
NM = Not Meaningful
(1) In order to reconcile net income to the core income
measures, the Company included the tax impact of all adjustments
using the 21% federal corporate tax rate. (2) Core income and core
income per diluted share, both of which are measures that are not
based on GAAP, are reconciled above to net income and net income
per diluted share, respectively, the most directly comparable GAAP
measures. Additional information regarding non-GAAP financial
measures presented in this press release can be found in the
"Definitions of Non-GAAP Measures" section, below.
Comments from Chief Executive Officer, Dan Peed: “I am
happy to report that we had a strong first quarter, driven by
expanding net earned premiums, coupled with a very low underlying
combined ratio. American Coastal’s earnings reflect our ability to
adapt and unlock value in an evolving insurance landscape and
underscores our commitment to delivering value to policyholders and
shareholders. First quarter net income continued trending upward to
$23.6 million, or up 38% from the fourth quarter of 2023. This
growth highlights American Coastal’s outperformance in key
operational metrics and reaffirms our position as a market leader
in our specialty business.”
Return on Equity and Core Return on Equity
The calculations of the Company's return on equity and core
return on equity are shown below.
($ in thousands)
Three Months Ended
March 31,
2024
2023
Income from continuing operations, net of
tax
$
23,599
$
30,367
Return on equity based on GAAP income from
continuing operations, net of tax (1)
67.7
%
195.4
%
Income from discontinued operations, net
of tax
$
—
$
236,913
Return on equity based on GAAP income from
discontinued operations, net of tax (1)
—
%
NM
Consolidated net income attributable to
ACIC
$
23,599
$
267,280
Return on equity based on GAAP net income
(1)
67.7
%
NM
Core income
$
24,280
$
30,700
Core return on equity (1)(2)
69.7
%
197.6
%
(1) Return on equity for the three months ended March 31, 2024
and 2023 is calculated on an annualized basis by dividing the net
income or core income for the period by the average stockholders'
equity for the trailing twelve months.
(2) Core return on equity, a measure that is not based on GAAP,
is calculated based on core income, which is reconciled on the
first page of this press release to net income, the most directly
comparable GAAP measure. Additional information regarding non-GAAP
financial measures presented in this press release can be found in
the "Definitions of Non-GAAP Measures" section below.
Combined Ratio and Underlying Ratio
The calculations of the Company's combined ratio and underlying
combined ratio on a consolidated basis and attributable to both the
Company's personal lines and commercial lines operating segments
are shown below.
($ in thousands)
Three Months Ended
March 31,
2024
2023
Change
Consolidated
Loss ratio, net(1)
23.1
%
18.9
%
4.2 pts
Expense ratio, net(2)
35.2
%
43.4
%
(8.2) pts
Combined ratio (CR)(3)
58.3
%
62.3
%
(4.0) pts
Effect of current year catastrophe losses
on CR
1.1
%
3.0
%
(1.9) pts
Effect of prior year favorable development
on CR
(0.6
)%
(3.6
)%
3.0 pts
Underlying combined ratio(4)
57.8
%
63.0
%
(5.2) pts
Personal Lines
Loss ratio, net(1)
71.4
%
29.0
%
42.4 pts
Expense ratio, net(2)
36.7
%
111.5
%
(74.8) pts
Combined ratio (CR)(3)
108.1
%
140.5
%
(32.4) pts
Effect of current year catastrophe losses
on CR
8.9
%
6.0
%
2.9 pts
Effect of prior year favorable development
on CR
(6.2
)%
(4.5
)%
(1.7) pts
Underlying combined ratio(4)
105.4
%
139.0
%
(33.6) pts
Commercial Lines
Loss ratio, net(1)
18.4
%
17.7
%
0.7 pts
Expense ratio, net(2)
34.6
%
35.6
%
(1.0) pts
Combined ratio (CR)(3)
53.0
%
53.3
%
(0.3) pts
Effect of current year catastrophe losses
on CR
0.3
%
2.7
%
(2.4) pts
Effect of prior year favorable development
on CR
(0.1
)%
(3.5
)%
3.4 pts
Underlying combined ratio(4)
52.8
%
54.1
%
(1.3) pts
(1) Loss ratio, net is calculated as losses and loss adjustment
expenses (LAE), net of losses ceded to reinsurers, relative to net
premiums earned. (2) Expense ratio, net is calculated as the sum of
all operating expenses less interest expense relative to net
premiums earned. (3) Combined ratio is the sum of the loss ratio,
net and expense ratio, net. (4) Underlying combined ratio, a
measure that is not based on GAAP, is reconciled above to the
combined ratio, the most directly comparable GAAP measure.
Additional information regarding non-GAAP financial measures
presented in this press release can be found in the "Definitions
of Non-GAAP Measures" section, below.
Combined Ratio Analysis
The calculations of the Company's loss ratios and underlying
loss ratios are shown below.
($ in thousands)
Three Months Ended
March 31,
2024
2023
Change
Loss and LAE
$
15,906
$
16,412
$
(506
)
% of Gross earned premiums
9.4
%
11.5
%
(2.1) pts
% of Net earned premiums
23.1
%
18.9
%
4.2 pts
Less:
Current year catastrophe losses
$
754
$
2,615
$
(1,861
)
Prior year reserve favorable
development
(432
)
(3,165
)
2,733
Underlying loss and LAE (1)
$
15,584
$
16,962
$
(1,378
)
% of Gross earned premiums
9.2
%
11.7
%
(2.5) pts
% of Net earned premiums
22.7
%
19.4
%
3.3 pts
(1) Underlying loss and LAE is a non-GAAP financial measure and
is reconciled above to loss and LAE, the most directly comparable
GAAP measure. Additional information regarding non-GAAP financial
measures presented in this press release can be found in the
"Definitions of Non-GAAP Measures" section, below.
The calculations of the Company's expense ratios are shown
below.
($ in thousands)
Three Months Ended
March 31,
2024
2023
Change
Policy acquisition costs
$
11,793
$
26,972
$
(15,179
)
Operating and underwriting
2,809
2,168
641
General and administrative
9,573
8,793
780
Total Operating Expenses
$
24,175
$
37,933
$
(13,758
)
% of Gross earned premiums
14.3
%
26.3
%
(12.0) pts
% of Net earned premiums
35.2
%
43.4
%
(8.2) pts
Quarter to Date Financial Results
Net income attributable to the Company for the first quarter
ended March 31, 2024, was $23.6 million, or $0.48 per diluted
share, compared to net income of $267.3 million, or $6.14 per
diluted share, for the first quarter ended March 31, 2023. Drivers
of net income during 2024 include increased gross premiums earned
and decreased expenses, driven by decreases in policy acquisition
costs and losses and LAE incurred, partially offset by lower
revenues as the result of higher ceded premiums earned. During the
first quarter of 2024, none of the Company's net income was
attributable to discontinued operations, compared to $236.9 million
of net income attributable to discontinued operations in the first
quarter of 2023.
The Company's total gross written premium increased by $10.3
million, or 5.5%, to $197.5 million for the three months ended
March 31, 2024, from $187.1 million for the three months ended
March 31, 2023. This increase was driven primarily by increased
premiums written in Florida as the Company continues to focus on
its commercial book of business. In addition, the Company saw an
increase in written premiums across the personal lines business,
due primarily to rate increases. The breakdown of the
quarter-over-quarter changes in both direct written and assumed
premiums by state and gross written premium by line of business are
shown in the table below.
($ in thousands)
Three Months Ended March
31,
2024
2023
Change $
Change %
Direct Written and Assumed Premium by
State (1)
Florida
$
184,601
$
176,611
$
7,990
4.5
%
New York
12,857
10,482
2,375
22.7
Texas
—
(9
)
9
(100.0
)
Total direct written premium by state
197,458
187,084
10,374
5.5
Assumed premium (2)
—
39
(39
)
(100.0
)
Total gross written premium by state
$
197,458
$
187,123
$
10,335
5.5
%
Gross Written Premium by Line of
Business
Commercial property
$
184,601
$
176,641
$
7,960
4.5
%
Personal property
12,857
10,482
2,375
22.7
Total gross written premium by line of
business
$
197,458
$
187,123
$
10,335
5.5
%
(1) The Company ceased writing in Texas as of May 31, 2022. (2)
Assumed premium written for 2023 and 2024 primarily included
commercial property business assumed from unaffiliated
insurers.
Loss and LAE decreased by $0.5 million, or 3.1%, to $15.9
million for the three months ended March 31, 2024, from $16.4
million for the three months ended March 31, 2023. Loss and LAE
expense as a percentage of net earned premiums increased 4.2 points
to 23.1% for the three months ended March 31, 2024, compared to
18.9% for the three months ended March 31, 2023. Excluding
catastrophe losses and reserve development, the Company's gross
underlying loss and LAE ratio for the three months ended March 31,
2024, would have been 9.2%, a decrease of 2.5 points from 11.7% for
the three months ended March 31, 2023.
Policy acquisition costs decreased by $15.2 million, or 56.3%,
to $11.8 million for the three months ended March 31, 2024, from
$27.0 million for the three months ended March 31, 2023, primarily
due to an increase in ceding commission income due to changes in
the terms of the Company's quota share reinsurance agreements
effective June 1, 2023. This was partially offset by increased
external management fees and premium taxes related to the Company's
increased commercial lines gross written premium.
Operating and underwriting expenses increased by $0.6 million,
or 27.3%, to $2.8 million for the three months ended March 31,
2024, from $2.2 million for the three months ended March 31, 2023,
driven by increased underwriting costs quarter-over-quarter. This
was partially offset by decreased overhead costs such as rent,
printing, postage and utilities as a result of cost saving
initiatives by the Company.
General and administrative expenses increased by $0.8 million,
or 9.1%, to $9.6 million for the three months ended March 31, 2024,
from $8.8 million for the three months ended March 31, 2023, driven
by increased external legal and audit fees.
Commercial Lines Operating Segment Highlights
Pre-tax earnings attributable to the Company’s commercial lines
operating segment totaled $32.8 million for the quarter ended March
31, 2024, compared to $38.9 million for the quarter ended March 31,
2023. Drivers of the quarter-over-quarter decrease in pre-tax
earnings included increased ceded premiums driven by the changes in
the Company’s quota share contracts effective June 1, 2023,
increased general and administrative expenses driven by increased
allocated overhead expenses such as salaries, legal and auditing
fees, and increased allocated operating expenses. This was
partially offset by increased gross premiums earned
quarter-over-quarter as the Company continues to focus on its
specialty commercial lines underwriting.
Quarter-over-quarter, policy acquisition costs decreased $13.0
million driven by an increase in ceding commission income due to
changes in the terms of the Company’s quota share reinsurance
agreements during the second half of 2023. The Company saw a
decrease of $2.3 million in losses and LAE incurred due to
decreased non-catastrophe and catastrophe losses
quarter-over-quarter, partially offset by a decrease in favorable
development on prior year losses (favorable development was
experienced for both quarters).
Personal Lines Operating Segment Highlights
Pre-tax income attributable to the Company’s personal lines
operating segment totaled $1.1 million for the quarter ended March
31, 2024, compared to a pre-tax net loss of $1.9 million for the
quarter ended March 31, 2023. This increase in pre-tax earnings can
be attributed to decreased expenses of $5.6 million, driven by
decreased general and administrative expenses of $3.8 million,
driven by decreased allocated overhead expenses such as salary
expenses. Policy acquisition costs also decreased $2.2 million,
driven by decreased agent commission expense quarter-over-quarter.
Finally, operating expenses decreased $1.4 million, driven by a
reduction in the Company’s overhead spending and decreased
allocation of investments in technology.
These decreased expenses were partially offset by decreased net
premiums earned of $2.6 million, driven by increased gross unearned
premiums and a $1.8 million increase in losses and LAE incurred,
driven by increased non-catastrophe losses
quarter-over-quarter.
Reinsurance Costs as a Percentage of Gross Earned
Premium
Reinsurance costs as a percentage of gross earned premium in the
first quarter of 2024 and 2023 were as follows:
2024
2023
Non-at-Risk
(0.3) %
(0.5) %
Quota Share
(29.8) %
(6.1) %
All Other
(29.2) %
(33.0) %
Total Ceding Ratio
(59.3) %
(39.6) %
Ceded premiums earned related to the Company’s catastrophe
excess of loss contracts decreased, driven by the need for less
coverage for the 2023-2024 treaty year due to the reduction in the
Company’s geographic footprint and exposure, as well as the
utilization of quota share reinsurance coverage for the Company’s
commercial lines operating segment, partially offset by rate
increases on the coverage experienced in the current year. The
utilization of quota share reinsurance coverage, as described,
increased the Company’s ceding ratio overall.
Reinsurance costs as a percentage of gross earned premium in the
first quarter of 2024 and 2023 for the Company’s personal lines and
commercial lines operating segments were as follows:
Personal
Commercial
2024
2023
2024
2023
Non-at-Risk
(2.7) %
(1.6) %
(0.2) %
(0.4) %
Quota Share
— %
— %
(31.5) %
(6.7) %
All Other
(26.1) %
(28.8) %
(29.2) %
(33.3) %
Total Ceding Ratio
(28.8) %
(30.4) %
(60.9) %
(40.4) %
Investment Portfolio Highlights
The Company’s cash, restricted cash and investment holdings
increased from $369.0 million at December 31, 2023 to $504.5
million at March 31, 2024. The Company’s cash and investment
holdings consist of investments in U.S. government and agency
securities, corporate debt and investment grade money market
instruments. Fixed maturities represented approximately 89.7% of
total investments at March 31, 2024 compared to 91.6% of total
investments at December 31, 2023. The Company’s fixed maturity
investments had a modified duration of 3.2 years at March 31, 2024,
compared to 3.4 years at December 31, 2023.
Book Value Analysis
Book value per common share increased 18.3% from $3.61 at
December 31, 2023, to $4.27 at March 31, 2024. Underlying book
value per common share increased 16.5% from $3.97 at December 31,
2023 to $4.63 at March 31, 2024. An increase in the Company’s
retained earnings as the result of net income in the first three
months of 2024, drove the increase in the Company’s book value per
share. As shown in the table below, removing the effect of AOCI
increases the Company’s book value per common share, as the Company
has experienced unfavorable capital market conditions resulting in
an accumulated other comprehensive loss position at March 31,
2024.
($ in thousands, except for share and per
share data)
March 31, 2024
December 31, 2023
Book Value per Share
Numerator:
Common stockholders’ equity
$
203,992
$
168,765
Denominator:
Total Shares Outstanding
47,799,465
46,777,006
Book Value Per Common Share
$
4.27
$
3.61
Book Value per Share, Excluding the
Impact of Accumulated Other Comprehensive Income (AOCI)
Numerator:
Common stockholders’ equity
$
203,992
$
168,765
Less: Accumulated other comprehensive
loss
(17,335
)
(17,137
)
Stockholders’ Equity, excluding AOCI
$
221,327
$
185,902
Denominator:
Total Shares Outstanding
47,799,465
46,777,006
Underlying Book Value Per Common
Share(1)
$
4.63
$
3.97
(1) Underlying book value per common share is a non-GAAP
financial measure and is reconciled above to book value per common
share, the most directly comparable GAAP measure. Additional
information regarding non-GAAP financial measures presented in this
press release can be found in the “Definitions of Non-GAAP
Measures” section below.
Conference Call Details
Date and Time:
May 9, 2024 – 5:00 P.M. ET
Participant Dial-In:
(United States): 877-445-9755
(International): 201-493-6744
Webcast:
To listen to the live webcast, please go
to investors.amcoastal.com and click on the conference call link at
the top of the page or go to:
https://event.webcasts.com/starthere.jsp?ei=1668133&tp_key=4d1ed0c96d
An archive of the webcast will be
available for a limited period of time thereafter.
Presentation:
The information in this press release
should be read in conjunction with an earnings presentation that is
available on the Company's website at
investors.amcoastal.com/Presentations.
About American Coastal Insurance Corporation
American Coastal Insurance Corporation (amcoastal.com) is the
holding company of the insurance carrier, American Coastal
Insurance Company, which was founded in 2007 for the purpose of
insuring Condominium and Homeowner Association properties, and
apartments in the state of Florida. American Coastal Insurance
Company has an exclusive partnership for distribution of
Condominium Association properties in the state of Florida with
AmRisc Group (amriscgroup.com), one of the largest Managing General
Agents in the country specializing in hurricane-exposed properties.
American Coastal Insurance Company has earned a Financial Stability
Rating of ‘A, Exceptional’ from Demotech.
American Coastal Insurance Corporation’s portfolio of
investments also includes Interboro Insurance Company, a New York
domiciled personal lines carrier founded in 1914.
Definitions of Non-GAAP Measures
The Company believes that investors' understanding of ACIC's
performance is enhanced by the Company's disclosure of the
following non-GAAP measures. The Company's methods for calculating
these measures may differ from those used by other companies and
therefore comparability may be limited.
Net income (loss) excluding the effects of amortization of
intangible assets, income (loss) from discontinued operations,
realized gains (losses) and unrealized gains (losses) on equity
securities, net of tax (core income (loss)) is a non-GAAP
measure that is computed by adding amortization, net of tax, to net
income (loss) and subtracting income (loss) from discontinued
operations, net of tax, realized gains (losses) on the Company's
investment portfolio, net of tax, and unrealized gains (losses) on
the Company's equity securities, net of tax, from net income
(loss). Amortization expense is related to the amortization of
intangible assets acquired, including goodwill, through mergers
and, therefore, the expense does not arise through normal
operations. Investment portfolio gains (losses) and unrealized
equity security gains (losses) vary independent of the Company's
operations. The Company believes it is useful for investors to
evaluate these components both separately and in the aggregate when
reviewing the Company's performance. The most directly comparable
GAAP measure is net income (loss). The core income (loss) measure
should not be considered a substitute for net income (loss) and
does not reflect the overall profitability of the Company's
business.
Core return on equity is a non-GAAP ratio calculated
using non-GAAP measures. It is calculated by dividing the core
income (loss) for the period by the average stockholders’ equity
for the trailing twelve months (or one quarter of such average, in
the case of quarterly periods). Core income (loss) is an after-tax
non-GAAP measure that is calculated by excluding from net income
(loss) the effect of income (loss) from discontinued operations,
net of tax, non-cash amortization of intangible assets, including
goodwill, unrealized gains or losses on the Company's equity
security investments and net realized gains or losses on the
Company's investment portfolio. In the opinion of the Company’s
management, core income (loss), core income (loss) per share and
core return on equity are meaningful indicators to investors of the
Company's underwriting and operating results, since the excluded
items are not necessarily indicative of operating trends.
Internally, the Company’s management uses core income (loss), core
income (loss) per share and core return on equity to evaluate
performance against historical results and establish financial
targets on a consolidated basis. The most directly comparable GAAP
measure is return on equity. The core return on equity measure
should not be considered a substitute for return on equity and does
not reflect the overall profitability of the Company's
business.
Combined ratio excluding the effects of current year
catastrophe losses and prior year reserve development (underlying
combined ratio) is a non-GAAP measure, that is computed by
subtracting the effect of current year catastrophe losses and prior
year development from the combined ratio. The Company believes that
this ratio is useful to investors, and it is used by management to
highlight the trends in the Company's business that may be obscured
by current year catastrophe losses and prior year development.
Current year catastrophe losses cause the Company's loss trends to
vary significantly between periods as a result of their frequency
of occurrence and severity and can have a significant impact on the
combined ratio. Prior year development is caused by unexpected loss
development on historical reserves. The Company believes it is
useful for investors to evaluate these components both separately
and in the aggregate when reviewing the Company's performance. The
most directly comparable GAAP measure is the combined ratio. The
underlying combined ratio should not be considered as a substitute
for the combined ratio and does not reflect the overall
profitability of the Company's business.
Net loss and LAE excluding the effects of current year
catastrophe losses and prior year reserve development (underlying
loss and LAE) is a non-GAAP measure that is computed by
subtracting the effect of current year catastrophe losses and prior
year reserve development from net loss and LAE. The Company uses
underlying loss and LAE figures to analyze the Company's loss
trends that may be impacted by current year catastrophe losses and
prior year development on the Company's reserves. As discussed
previously, these two items can have a significant impact on the
Company's loss trends in a given period. The Company believes it is
useful for investors to evaluate these components both separately
and in the aggregate when reviewing the Company's performance. The
most directly comparable GAAP measure is net loss and LAE. The
underlying loss and LAE measure should not be considered a
substitute for net loss and LAE and does not reflect the overall
profitability of the Company's business.
Book value per common share, excluding the impact of
accumulated other comprehensive loss (underlying book value per
common share), is a non-GAAP measure that is computed by
dividing common stockholders' equity after excluding accumulated
other comprehensive income (loss), by total common shares
outstanding plus dilutive potential common shares outstanding. The
Company uses the trend in book value per common share, excluding
the impact of accumulated other comprehensive income (loss), in
conjunction with book value per common share to identify and
analyze the change in net worth attributable to management efforts
between periods. The Company believes this non-GAAP measure is
useful to investors because it eliminates the effect of interest
rates that can fluctuate significantly from period to period and
are generally driven by economic and financial factors that are not
influenced by management. Book value per common share is the most
directly comparable GAAP measure. Book value per common share,
excluding the impact of accumulated other comprehensive income
(loss), should not be considered a substitute for book value per
common share and does not reflect the recorded net worth of the
Company's business.
Discontinued Operations
On February 27, 2023, the Florida Department of Financial
Services was appointed as receiver of the Company's former
subsidiary, United Property & Casualty Insurance Company
("UPC"). As such, prior year financial results and Consolidated
Balance Sheet components have been reclassified to reflect
continuing and discontinued operations appropriately.
Forward-Looking Statements
Statements made in this press release, or on the conference call
identified above, and otherwise, that are not historical facts are
“forward-looking statements”. The Company believes these statements
are based on reasonable estimates, assumptions and plans. However,
if the estimates, assumptions, or plans underlying the
forward-looking statements prove inaccurate or if other risks or
uncertainties arise, actual results could differ materially from
those expressed in, or implied by, the forward-looking statements.
These statements are made subject to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements do not relate strictly to historical or
current facts and may be identified by their use of words such as
“may,” “will,” “expect,” "endeavor," "project," “believe,” "plan,"
“anticipate,” “intend,” “could,” “would,” “estimate” or “continue”
or the negative variations thereof or comparable terminology.
Factors that could cause actual results to differ materially may be
found in the Company's filings with the U.S. Securities and
Exchange Commission, in the “Risk Factors” section in the Company's
most recent Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q. Forward-looking statements speak only as of
the date on which they are made, and, except as required by
applicable law, the Company undertakes no obligation to update or
revise any forward-looking statements.
Consolidated Statements of Comprehensive
Income In thousands, except share and per share amounts
Three Months Ended
March 31,
2024
2023
REVENUE:
Gross premiums written
$
197,458
$
187,123
Change in gross unearned premiums
(28,636
)
(42,647
)
Gross premiums earned
168,822
144,476
Ceded premiums earned
(100,092
)
(57,152
)
Net premiums earned
68,730
87,324
Net investment income
4,508
2,589
Net realized investment losses
—
(83
)
Net unrealized gains (losses) on equity
securities
(50
)
474
Other revenue
16
16
Total revenues
$
73,204
$
90,320
EXPENSES:
Losses and loss adjustment expenses
15,906
16,412
Policy acquisition costs
11,793
26,972
Operating expenses
2,809
2,168
General and administrative expenses
9,573
8,793
Interest expense
2,719
2,719
Total expenses
42,800
57,064
Income before other income
30,404
33,256
Other income
810
588
Income before income taxes
31,214
33,844
Provision for income taxes
7,615
3,477
Income from continuing operations, net of
tax
$
23,599
$
30,367
Income from discontinued operations, net
of tax
—
236,913
Net income
$
23,599
$
267,280
OTHER COMPREHENSIVE INCOME (LOSS):
Change in net unrealized gains (losses) on
investments
(198
)
4,231
Reclassification adjustment for net
realized investment losses
—
83
Income tax benefit related to items of
other comprehensive income (loss)
—
—
Total comprehensive income
$
23,401
$
271,594
Weighted average shares outstanding
Basic
47,323,356
43,124,825
Diluted
48,969,550
43,574,840
Earnings available to ACIC common
stockholders per share
Basic
Continuing operations
$
0.50
$
0.70
Discontinued operations
—
5.49
Total
$
0.50
$
6.19
Diluted
Continuing operations
$
0.48
$
0.70
Discontinued operations
—
5.44
Total
$
0.48
$
6.14
Dividends declared per share
$
—
$
—
Consolidated Balance Sheets In
thousands, except share amounts
March 31, 2024
December 31, 2023
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale
$
178,316
$
180,703
Equity securities
6,214
—
Other investments
14,217
16,487
Total investments
$
198,747
$
197,190
Cash and cash equivalents
285,400
153,762
Restricted cash
20,309
18,070
Accrued investment income
2,534
2,104
Property and equipment, net
10,351
3,658
Premiums receivable, net
53,990
47,274
Reinsurance recoverable on paid and unpaid
losses
257,090
341,102
Ceded unearned premiums
137,760
159,147
Goodwill
59,476
59,476
Deferred policy acquisition costs
27,290
25,041
Intangible assets, net
8,511
9,323
Other assets
15,853
36,141
Assets held for disposal
—
8,095
Total Assets
$
1,077,311
$
1,060,383
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unpaid losses and loss adjustment
expenses
$
279,556
$
370,221
Unearned premiums
321,693
293,057
Reinsurance payable on premiums
38,387
317
Payments outstanding
1,971
2,116
Accounts payable and accrued expenses
81,725
75,284
Operating lease liability
105
776
Other liabilities
1,111
1,159
Notes payable, net
148,771
148,688
Liabilities held for disposal
—
—
Total Liabilities
$
873,319
$
891,618
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.0001 par value;
1,000,000 authorized; none issued or outstanding
—
—
Common stock, $0.0001 par value;
100,000,000 shares authorized; 48,011,548 and 46,989,089 issued,
respectively; 47,799,465 and 46,777,006 outstanding,
respectively
5
5
Additional paid-in capital
435,543
423,717
Treasury shares, at cost; 212,083
shares
(431
)
(431
)
Accumulated other comprehensive loss
(17,335
)
(17,137
)
Retained earnings (deficit)
(213,790
)
(237,389
)
Total Stockholders' Equity
$
203,992
$
168,765
Total Liabilities and Stockholders'
Equity
$
1,077,311
$
1,060,383
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240509423213/en/
Alexander Baty Vice President, Finance & Investor Relations,
American Coastal Insurance Corp. investorrelations@amcoastal.com
(727) 425-8076 Karin Daly Investor Relations, Vice President, The
Equity Group kdaly@equityny.com (212) 836-9623
American Coastal Insurance (NASDAQ:ACIC)
Historical Stock Chart
From Dec 2024 to Jan 2025
American Coastal Insurance (NASDAQ:ACIC)
Historical Stock Chart
From Jan 2024 to Jan 2025
